DJMurphy wrote:It certainly doesn't offer the artist that much financial incentive to sell on iTunes if they're gonna see such a reduced cut of what a CD sale could potentially bring.

iTunes pays $7 for a ful-album download. A label clearing $7.00 for a cd sale is pretty good, really. Labels typically sell their stuff to distributors for approximately 50% of the list price. For example a $15.98 list CD might be purchased by the distributor for $8. So it's not really that far off.

Additionally, iTunes pays .70 on a single song. That's an awesome rate. Nothing's very good for artists on a major label, but indie artists can clean up on iTunes. Look at us!